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HomeMy WebLinkAbout2185 03-13-2018 TWDB Acceptance Letter and Single Audit Requirement Texas Water Development Board P . O. Box 13231 , 1700 N . Congress Ave . Austin , TX 78711 -3231 , www. twdb . texas . gov Phone (512) 463-7847 , Fax (512) 475-2053 April 24, 2018 The Honorable Linda Martin D L © L U U 2 Mayor City of Euless APR 2 6 2018 D 201 North Ector Drive Euless, Texas 76039 - 3595 CITY OF EULESS Dear Mayor Martin : Award letter including SINGLE AUDIT REQUIREMENT The commitment for financial assistance referenced below represents a potential pass - through federal award provided by the Environmental Protection Agency and approved by the Texas Water Development Board (TWDB) . Upon closing, this award could contain requirements imposed by federal law, federal regulations, and the loan or grant agreement. Clean Water State Revolving Fund, CFDA 66 . 458 $ 2 , 785 , 000 Waterworks and Sewer System Revenue Bonds, Series 2018 Loan Number: L1000737 ; Project Number : 73771 Award Year : FY2018 Clean Water State Revolving Fund, CFDA 66 . 458 $ 473 , 300 Principal Forgiveness Agreement Principal Forgiveness Number: LF1000738 ; Project Number : 73771 Award Year : FY2018 Additional information will be provided to you subsequent to an authorized release of funds . The additional information will indicate how much, if any, of an escrow release is considered reportable in your Single Audit in your Schedule of Federal Expenditures . This amount cannot be determined until funds are released in the future . This information should be saved, and shared with your CPA who will prepare your single audit report (if the total of all federal expenditures exceed $ 750 , 000 for the year) . In accordance with these requirements, TWDB staff monitors the activities of subrecipients as necessary to assure that federal awards are used for authorized purposes in compliance with laws, regulations, and contracts (or grant agreements) , and that performance goals are also achieved. Our Mission Board Members To provide leadership , information , education , and Peter Lake, Chairman I Kathleen Jackson , Board Member I Brooke T. Paup , Board Member support for planning , financial assistance, and outreach for the conservation and responsible development of water for Texas Jeff Walker, Executive Administrator The Honorable Linda Martin Mayor City of Euless April 24, 2018 Page 2 As part of overall compliance, each subrecipient is required to permit the pass - through entity (TWDB) and auditors to have access to the records and financial statements as necessary for the pass -through entity to comply with the requirements . Subrecipients expending $ 750, 000 or more in federal awards during the subrecipient' s fiscal year are required to obtain an audited Single Audit report in a timely manner for that fiscal year. Helpful links to more information are on the following page . In the event that you are exempt from the Single Audit requirement, you are required to complete the enclosed Confirmation of Exemption form instead. Please advise the Certified Public Accountant (CPA) engaged to prepare your annual audit of this additional requirement, and to include all federal assistance on your schedule of federal awards . Within six months of receiving the Single Audit, TWDB staff will issue a management decision related to any audit findings and ensure that the subrecipient takes appropriate and timely corrective action. If audit findings are issued, please ensure that management responses include a corrective action plan that addresses each audit finding included in the current year auditor' s report. The corrective action plan shall provide the name (s) of the contact person (s) responsible for corrective action, the corrective actions planned, and the anticipated completion date. If the auditee does not agree with the audit findings or believes corrective action is not required, then the corrective action plan shall include an explanation and specific reasons . Changes made by adoption of 2 CFR 200 (also referred to as "Uniform Guidance" 1) impact all subrecipients currently. These changes are in effect for fiscal years beginning on or after December 26, 2014 (§ 200 . 110 Effective/applicability date) . Two of the more significant changes affecting subrecipients include : • The Subrecipient shall request a copy of the audit organization ' s peer review report which the auditor is required to provide under Generally Accepted Government Auditing Standards (§zo0 . 509 (a) Auditor selection) ; 1 https ://www. ecfr.gov/cgi-bin/text-idx?SID=6214841a79953f26c5c230d72d6b70a 1 &tp1=/ecfrbrowse/Title02/2cfr200 main 02.tpl The Honorable Linda Martin Mayor City of Euless April 24, 2018 Page 3 • The Subrecipient shall submit electronically2 to the FAC the completed audit, data collection form (Form SF- SAC) and the reporting package with the FAC3 within the earlier of 30 calendar days after receipt of the audit report, or nine months after the end of the audit period (§200. 512 (a) Report submission) . If you or your CPA have any questions regarding this matter or Single Audit requirements, please contact Dennis Kyhos by email at ( 512 ) 463 - 7553 or dennis .kyhos@twdb .texas . gov. Sincerely, Car eton S . Wilkes, CPA CIA Team Lead, Financial Compliance c w/enc : Ms . Janina Jewell, Director of Finance File Enclosure - Single Audit Confirmation of Exemption 2 §200 . 512 Report submission (d) (d) Submission to FAC. The auditee must electronically submit to the FAC the data collection form described in paragraph (b) of this section and the reporting package described in paragraph (c) of this section. 3 §200. 36 Federal Audit Clearinghouse (FAC) . FAC means the clearinghouse designated by OMB as the repository of record where non- Federal entities are required to transmit the reporting packages required by Subpart F—Audit Requirements of this part. The mailing address of the FAC is Federal Audit Clearinghouse, Bureau of the Census, 1201 E. 10th Street, Jeffersonville, IN 47132 and the web address is : http://harvester. census.gov/sa % Any future updates to the location of the FAC may be found at the OMB Web site. The Honorable Linda Martin Mayor City of Euless April 24, 2018 Page 4 Detail guidance on Single Audit requirements may be found at: Title 2 Subtitle A Chapter II Part 200 UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS . https : / /www. ecfr. gov/ cgi -bin/text- idx?node = sp2 . 1 . 200 . f General information about the program is available on the EPA Clean Water State Revolving Fund home page : https : / /www. epa. gov/ cleanwaterrule TEXAS WATER DEVELOPMENT BOARD (TWDB) SINGLE AUDIT CONFIRMATION OF EXEMPTION FORM If your organization is exempt from completing a Single Audit for the fiscal year indicated, please submit this completed form to TWDB within 60 days after the end of your fiscal year to : Regular Mail Texas Water Development Board (TWDB ) Financial Management Division P . O . Box 13231 Austin, Texas 78711 -3231 E-mail Address Fax Number fmfinancec twdb .texas . gov ( 512) 936-2298 Federal/State Expenditure Disclosure I certify that our organization did not exceed the federal expenditure threshold that would require a Single Audit to be performed this Fiscal Year (or indicate fiscal year here) . (Important note: If more than $ 750k in expenditures from all sources combined of federal funds, a single audit is required.) Total Federal Cumulative Expenditures for this Fiscal Year $ Authorized Signature Date (Must be City Official, City Manager, CFO, CEO, or equivalent) Printed Name Title Name of Organization If additional information is needed concerning Single Audit requirements , please call TWDB Financial Compliance at (512) 463 -4189 .